EPR law on packaging recycling poses a challenge for Thai exporters
How ready are Thai businesses to expand their social and environmental responsibilities?
As every organisation aims for sustainable business development, they must expand their social and environmental responsibilities. Changing global trade regulations now require products to be eco-friendly and have traceable supply chains to build consumer confidence. This has become a tool for European countries to block products lacking manufacturer responsibility. Thailand, as an exporting country, cannot avoid these regulations, especially regarding used packaging.
Under the principles of Extended Producer Responsibility (EPR), which the European Union is set to implement with trading partners this year, both the public and private sectors in Thailand must prepare by developing infrastructure and laws to cope with these changes. One such initiative is the Sustainable Packaging Management Act, or EPR law, which is expected to be presented to the Cabinet within this year and implemented by 2027.
Thongchai Sirithorn, vice president of the Thailand Institute of Packaging and Recycling Management for Sustainable Environment (TIPMSE) of the Federation of Thai Industries, said that EPR expands the environmental responsibility of producers throughout the entire lifecycle of products and packaging — from design and production to post-consumer management. This ensures compliance with eco-friendly principles. Therefore, under EPR, producers' roles extend beyond selling products; they must also manage used packaging, including collection, reuse, recycling, and treatment, in line with the principles of the circular economy.
The importance of the private sector preparing for EPR laws is underscored by TIPMSE, the primary organisation driving and developing EPR mechanisms in collaboration with various sectors. This includes legal development, proposing tax incentives, developing infrastructure, promoting eco-design, managing data, communicating understanding, and fostering cooperation.
Additionally, a pilot Voluntary EPR project was launched to test and gather data, reducing future operational obstacles. This began with the PackBack project in 2021, which collected used packaging in three municipalities in Chonburi province — Saensuk, Ban Bueng, and Koh Si Chang. The project aims to expand to 11 more municipalities in 2024, testing the collection of used packaging based on circular economy principles and EPR.
As all sectors are now actively promoting EPR, over 100 organisations pledged their cooperation at the Sustainability Expo 2023. Four partner organisations — PPP Plastics, PRO Thailand Network, Aluminium Closed Loop Packaging System (Al Loop), and TIPMSE PackBack — along with major collectors like TBR and SCGP, have projects supporting the practical implementation of EPR mechanisms.
The goal of establishing PROVE (Producer Responsibility Organisation Voluntary Effort) as a model for packaging management to reduce the private sector under EPR is another critical plan TIPMSE is pushing. This involves piloting the development of a PRO (Producer Responsibility Organisation) mechanism to represent businesses in managing sustainable packaging under the new EPR law. The private sector plans to jointly establish the PROVE organisation to trial voluntary EPR operations for collecting used packaging, learn from the experience, and propose suitable contexts to the government. PROVE aims to officially launch at the Sustainability Expo 2024 in October.
The draft EPR law outlines two sustainable packaging approaches: Individual Producer Responsibility (IPR) and a collective central organisation called PRO. Most businesses, through consultations, favour establishing a joint PRO rather than individual management.
"We believe the private sector can collaborate to manage packaging but need government support in areas like legislation and municipal engagement to ensure household waste sorting. Environmental management is not solely the responsibility of any one party but requires participation from the private sector, civil society, and the public," said Thongchai.
In the past, seven major private companies in Thailand formed the PRO-Thailand Network, pioneering the management of three types of used packaging: PET bottles, beverage cartons, and snack bags. Additionally, the Aluminum Loop manages aluminum, and PPP Plastic handles plastics. The challenge now is to expand packaging types and integrate these efforts into a single PRO to comprehensively manage packaging.
Before the EPR law is enacted in 2027, the challenge is to educate and prepare all stakeholders, including businesses and all involved in the value chain, such as consumers and local governments. TIPMSE is continuously organising activities to ensure readiness.
